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tv   Mad Money  CNBC  October 30, 2012 6:00pm-7:00pm EDT

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"squawk on the street" resuming from the new york stock exchange. don't miss tonight special coverage of hurricane sandy, 7:00 p.m. eastern time on cnbc. i always like to say, there is a bug mmul market somewhere. i'm cramer. welcome to cramerica. my job is not just to help you, but to entertain you. we have this once in way life time two-day pause in trading thanks to our unwelcome guest, sandy. and this miserable nation pounding hurricane has stimyed
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my ability to talk about the market, because alas we didn't have one. for me, it is right smack in the middle of earning's season. and then draw some mid season conclusion that can give us a sense of what awaits us in the final months of do 12. the report is so stark that we have to go over them right now before it starts up again tomorrow. first, our company has spent years and years and years trying to distance themselves from what seemed to be the no growth usa market. the unified currency opened up the market that was right for us expansion.
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second, they took part in a tiny grab that has provided us earnings for several years now. we are making the move to comment on the conference call that gave you hope that a company's business could have another leg up somewhere down the road. ki china play became a prize possession on call treat. ♪ hallelujah >> who is going in there, rush thea, brazil. where companies were starting to do business. it meant that you were provicial and you were hostage to the quote that is we have come to accept that usually, ended up with a quickly over heated economy. this quarter has stood that whole three-point paradign on its hoead.
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they could crush the ability to the united states has given you. you have to cut the stocks from the cover off the united states. a country where we are pushing up 40 points per share this morning. virtually all the money was made right here in the united states. ♪ >> europe, was so awful that it almost wiped out the american gain. >> the house of pain. >> asia had a nice turn to a 40 million plus dollar gain. $85 million. but, hey, that is not much from the scheme of things. south america profit open again not all that significant. contrast that news with the report. ♪ hallelujah >> u.s. based furniture maker makes bed springs that i'm sure
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at some point pondered going into europe or latin mesh. i'm sure a whipper snapper said we have to make it more in the bed spring market. guess what? the good old us of a made these guys important. not because the stocks are going down, this one will be a jumper when the market opens tomorrow. it has been two weeks since the markets open tomorrow. the mortgage business, us bank corp and i'm not banking away. wells far go. i think it may have dinged their profit margin. hiring people to meet that demand. how could housing be this strong in light of all of the markets since the economy got so weak?
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lower prices and lower taxes and of course super low mortgage rates. and then moving them into new houses where the jobs are. it doesn't hurt that they are putting money into them. they are starting to close with declining housing stocks. good news for household formati formations. you can go through these. we have a monster good number from wirl pool. owens corning. that is one of those company that is has the dominate iing roofing shingle thing. normally, i would like to buy this one off of hurricane sandy. but wait a second. no thank you. no dunka. check out stanley black and decker. what could be a better play than
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hardware with housing picking up and the need to be rebuild because of sandy. oh, hold it. stanley black and decker has taken it by storm and that has become the bain of their existence for a couple of quarters by now. in the previous quarter, it has failed to protect the flag. the handbag company has delivered a fabulous report. many tried to make europe bigger than america. now a freezing of europe has lead to who rhorrendous earning. finally, there is a resource based company that didn't move aggressively into china. now there are dramatic supply gluts even in oil we heard that from the conference call and a
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return to major production by iraq. i can china is coming back. right now, that could be wishful thinking. i think things could pan out. making money is hard money. the easy money is from the u.s. here is the bottom line. the earning season has paused long enough that we can watch our breath and when we do, it is the companies that failed and chose not to go over sxt eeea s please don't stray too far from home if you want to invest in acompany that would let you get some sleep at night. which is what i had at the local doubletree. >> thank you for taking my call. it is an honor to speak with you. this fly fishing instructor from the university of tennessee wants to know, what is up with
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fo ford? >> it is a rocket flying too low in europe. where they were six years ago they decided to reinvent the company and close a lot of factories i think they will. but because of europe the stock has been a disappointment. devan in ohio. >> booyah, jim. i was wondering about disney. >> i like that deal. i think bob did it again. they own star wars. what a franchise. people laughed when it happened. not how people laughed -- whatever. believe me, it is not going to be like laugh in. if that stock opens down as all tomorrow. buy disney. let's go to brett in texas. >> hello, thank you for taking
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my call. i want to send you a baylor bears booyah. >> fair enough. >> i'm a graduate student looking to get a little growth in my portfolio as i near graduati graduation. i'm looking for companies that have pulled back with the recent call and i'm curious to hear your take on its long-term process. >> i read through the under armour call. and i read it in the bathroom. i didn't know where the stock was after. the stock is getting hammered. so let's be careful. let it come in more if you want to pick it up. right now it is what i call a down stock. look for company that is aren't overseas. it turns out that home sweet
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home is really home sweet home the usa. "mad money" will be right back. >> coming up reading between the lines newscorp made headlines when it announced it was unlocking for shareholders. stick around cramer has the front page report. and later, rebuild restore. the market has seen a steady flow of strong signals of housing. but are you running out of ways to join the rebound? cramer has a fresh look at restoration hardware coming up on "mad money." customer erin swenson bought from us online today.
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even when the stock markets close because of bad weather and wall street under three feet of water, i'm out here trying to make us some money. lately it has become harder. my stocks keep running the gountlet gauntlett of europe and china. we have companies that are creating value for shareholders regardless of what is going on in the rest of the world. the economy could smash into a retaining wall and i believe these stocks are still bullish place to be. hence why i'm talking about the
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break up, corporate break ups. we love it when companies try to buyback loads of stock at low prices and by making smart acquisitions. but the be all and end up is when they try to make more money for you. we see this play out over and over again. although, with kraft the snack spin off. so tonight, i want to talk about another company that is breaking itself up. newscorp has five major business types. they own foxnews, fx and then there is newscorp satellite tv
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division. they have a television segment and have two shows and further down the road on the movie side, they have a pair of seek quells avatar, they have some powerful stuff in the pipe for years to come. i said they have five business lines, and the fifth one is publishing and frankly, well, sounds speak a thous and words. [ dog barking ] . it is a baug. it is a dog. >> it is spinning off the publishing unit and it is a classic edition by breaking up with publishing it will no longer be held back. it should see it grow by two r
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percentage points. that is what portfolio managers love. right now, sales are 12 times of the earnings and that is with thelishing business still included. which is why my charitable trust has been buying the stocks. the newscorp publishing business owns the stock and nos cothey to snap it up but didn't get it. they don't want that division to fall apart. they want it to work. but i'm a fan of this spin off. because i will allow it to own
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it. it is a best of breed media. the stock is worth owning. they are bringing 55% of the operating income. i think the cable business can deliver advertisinining growth. the company did disappoint in the recent quarter and the stock went down. lower operating income and $2.85 billion impairment charge and even though the carry was not so hot. the cable networks were not so strong. while the head line results were disappointing the commentary in the conference call was encouraging.
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plus they have a terrific balance. even though i would prefer dividend a $10 billion buyback. it is almost like viacomm, that blunts how the quarter well let's just say it was not so hot. this would be a $27.75 stock. $4, 16.6% higher than where it was now. i think it can go higher than that or my charitable trust. the scandal last year threw the company's succession plan into chaos. the guy has built a well oiled machine and will keep working well after he was gone. the bottom line, breaking up is easy to do especially when it
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unlocks value for shareholders. when the smoke clears, i think people will on this pure play media business. after the break, i'll try to make some more money. >> rebuild, restore. with the boost from today's news that home prices are on the rise. are you running out of ways to join the rebound. cramer has his eye on the ipo. he lays the foundation for restoration hardware and lump of gold? this has been burned in 2012 as gas has caused dpoeld gold to g cold shoulder when he goes off the charts. all coming up on monday money. a. .
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>> high flying united states air force booyah. >> i'm sending you back a thank you for serving the military. we got to have them on the show. booyah back at you. >> this veteran's day "mad money" salutes those who help to defend our freedom. if you are someone in your family is proudly serving or has served, we invite you to join our live studio audience for "mad money" invest in america honoring our troops.
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the markets haven't come back to normal. we are still cleaning up after one of the worst hurricanes after recent memory. teams like the tremendous rebound. the good news doesn't stop for anything not even my good friend sandy. this morning we good some killer data that said home prices increased by 2% in august. he we got some information on
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platt. these are just the developments that we have had since the storm shut down the stock market. we have had tremendous numbers on the stocks. eathan allen reported numbers up. 56%. well ahead of wall street expectations but there is just one problem people. we are running out of ways to play it. pier one up 46%. get this. standard pacific, spf up more than double. they are well exploited and every now and then you get a moment where the market gives you what you need. this is one of those times restoration hardware, this ipo
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is the kind of housing related stock that we were praying for. restoration reminds me of people whose homes might go there i think contractors and i use it for my beach house redo after irene, sandy is making me go back to that one. it is a high quality luxury home furniture ipo that is growing like a weed. that is why i want you to get a piece of it. back in 2008, the combination of the recession wreaked havoc on it and the company has taken a hit. once it was private the new
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owners did something they never could have gotten away with. they doubled down with big ticket furniture. ritzy chandeliers and closing many of it's old stores and replacing them with free standing galleries. they are putting up pretty good numbers. the company is taking shares with the home furnishing markets. it is a smaller store base than william senoma. so the company has a lot of room to expand. restoration posted a 27.8% increase in same store sales and for the last 12 months in july they had a 29% increase. people these are bullish numbers.
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william senoma, these other guys aren't close to their growth rate. that is more expensive than william see gnosenoma. but i think they deserve the rate. it has the highest growth in the group. we need a new housing related stock and we are in luck. because it is expected to become public even if it comes at a higher price it is probably worth buying. i want you to get in on the ipo. because that is how you get burned. get in on the deal around the mid 20s. or find another one with another risk reward. i want to go to dan in ohio.
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>> hey jim it is dan here in ohio. >> hey dan. >> i'm a 15 year veteran in the industry and in november of 2008 our industry got crippled up pretty good. my question is regarding brunswick. the first week of november of 2008, questioning where we might go with the new president and buyer's confidence for the luxury market. >> it is clear the market believes that under a romney administration the rich people would do better. whether you believe that or not that is the perception. if romney does win brunswick goes higher. let's go to ryan in mississippi. >> booyah cramer. what are your thoughts on mmc
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and where do you see this company goes in the feature. >> that stock has done nothing. i got to tell you. it needs to be a catalyst. i has a couple of businesses. i can't recommend it. not in a situation where you might be able to get travelers on the pull back. it could be much, much better. it is exactly what we needed. i think restoration hardware fits the bill. i want you to buy bye-bye and stay with cramer. >> coming up, are you ready to get charged up? cramer goes electric on an all new hyper active lightening round. and later lump of coal? this has been burned in 2012 as natural gas has caused coal to get the cold shoulder.
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cramer has the plays when he goes off the charts. >> all coming up on m"mad mone." if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this.
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it is time for the lightening round. and then the lightening round is over. are you ready? it is time for the lightening round i want to start with rebecca in illinois. >> thank you for taking my call. >> my pleasure. >> no, no we are going to stay away from mcdonald's. it is in a down spin. let's wait until it goes to 80. brian in texas, brian. >> hi, jim. like yourself i thought i was of sound mind. >> no, no this is way too competitive. go for verizon. i will embrace centurylinc but it is no good.
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>> how do you feel about starbuck's? >> it is going down. i know that. it is down from 60 and forget it. i want to bet on howard schultz the ceo. isaac. >> booyah how are you? >> how are you. >> fine. >> i hope you and your family are safe. >> thank you very much. >> thank you. >> the reason i'm calling is -- food. i own it for the spin off and they have sold 12% to the public and they are going to spin off the remaining 88 cents to shareholders within six months. do i hold on to it? >> i read a negative article about the ceo and i think it
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hurt the stock. i think a lot of people are angry at the guy but i would hold on to the stock. >> bill. >> my question is with marley corp. next year they claim to be tripling in size. >> well let's wait. you may be disappointed and disappointed and disappointed. >> [ baby crying ] >> i'm not willing to take that. >> bye-bye by it has come down enough to be equal. panera. let's go to rafeek in wisconsin. >> how are you? >> i'm doing fine there sir how about you? >> i love your show and you have a great style and knowledge like you. my question is about the company called osh kosh. >> the stock is not doing well.
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why? i mean over the last three or five years, i think they are doing better than people think. mark in missouri. >> booyah jim from st. louis. tazer. >> i have not looked at that in some time. i can't make a snap judgement on it. let's take it down and do some work on tay szer. >> here in san diego where it is warm and dry. my stock is really. >> the stock went off when it went public. i think it is too expensive. i think these stocks have had a big move. i'm not going to take them at these levels. >> let's go to jason in massachusetts. >> jim, mitt romney says that china steal's our intellectual
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property, what do you think of one of these tech companies that enforces intellectual property rights like. >> i got to tell you they are impossible to value. i am not the call. >> let's go to albert in florida albert. >> booyah jim. >> booyah albert. >> long time listener first time caller. i would like to know about pgh. >> when that came public i said i don't like that group. but that is not a good enough answer for you now. i have to do homework on that. that yield is too big. it is worth looking at but it may turn out to be a problem. and that ladies and gentlemen is the conclusion of the lightening round.
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>> coming up, lump of gold coal? our technical signals are taking a turn. cramer has the plays when he goes off the charts. great barri, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
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a tough day and the stock market wasn't even open. half the country got pounded by hurricane sandy. how about some good news. coal after getting absolutely pulverized, 74% from the peak. rb on a technical basis. my cleek at the street.com. the dow jones coal index is
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reversing it is actually started breaking out to the upside. ♪ hallelujah and once the markets open again he thinks we could have a serious coal rally. why are they so, confidence. take a look at the weekly chart at the u.s. coal index. it shows that investors it has pretty much defined the downtrend in the coal index. it was only in brief rallies. for months and months and mon months, that is the national
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park. fitzpatrick points out that the balance of aggressiveness has normalized and for the last few months it has turned sideways. security changes handed at the same general level. base building and it is awaiting a resolution. now the buyers are taking wall street coal index. it has become light. time down to the kurpt price and now we reached a point where the cool index could go below the
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moving average. maybe a break out could lead to above the rally. if you want to play coal, fitzpatrick suggests you do it with one of the other players. let's go with the coal chart. this is a stock that had been unable to tstay above the line. and fitzpatrick notes that it was done until mid august when the 50 day moving average flat lined.
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the reverse and after the past few months the 50 day moving average floor of support rather than the stealing of resistance hits there and goes down and suddenly hits there and goes higher and it is the spring board people. in late september and to a high and then actually broke out above the 200 day moving average. the buyers are now in control and not the sulers. technicians live for that move. i live for other things. take a look at the volume bars. it has been on the rise since
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the stock has been climbing. when you see the rising volume, that is a sign of institutional buying. and he thinks the stock is one you want to buy. okay now r, take a begagander a chart. this one shows the same chart. look at this. this is like an accuousticacous feeling. the average is now sud ebbly look at this. moving higher. this is a huge development and
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it affects the quitment of the buyers. you didn't take out that low there. the stock has built a base and the sellers are probably finishes as buyers don't want to wait. never the less, he thinks the 50 day moving average. now, before you go whole hog on this stuff, let's talk common sense on this stuff. i believe natural gas has moved
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up on this. which allows in ventary to be moved up on this. that business is to increase coal demand although that has fallen off the menu has an attractive power post fukushima. the most important we have a candidate who is very pro coal governor romney. that is all the good news. now, let me give you a negative. one that will cancel out all the positives.
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that would crush the coal move. the charts indicate that the long bear market and it may be able to rebound. i believe if romney does, look out. you will wish you never heard of any of these stocks. "mad money" is back after the break. hi. i'm henry winkler. and i'm here to tell homeowners
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big shake up at apple. the guy who wrecked throughout the retail stores he is out of here. he got his team in place. sell sell sell apple. he cook could have done nothing and sell sell sell apple. and people would say sell sell sell am. we are in full sell apple mode now. i think they were needed. steve jobs never promoted something like that. in fact he was willing to give sam samsung all of apple because jobs didn't like working with
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intel which he regarded as a company that didn't compete with apple. he loved the retail stores and made the cheery staff unhappy. jobs was not a nice man. so if these were so necessary, why weren't they viewed as being positive. losers have management turmoil. second and more important, this is no longer steve jobs apple. the book is so sensation al in o many levels. i asked him how he viewed the post jobs apple and everything
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seems so increment al. "mad money" it would go right to that show. i wish he had. apple need to buy into the cable companies. jobs brow beat the music execs into submission. he told him he can do the brow beating it is necessary. as i mentioned to them, the people who follow my charitable trust, it is a great balance sheet. we need omg to get apple to the new highs. that we never thought of, then the apple call will seem silly.
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without it you can own it and invest in it but you will have to take some lumps. stay with cramer are. >> i want to give you a black knight combat booyah. >> big navy booyah blue blue blue blueyah. >> i'm sending you back a thank you for serving. we have to have you on this show. >> this veteran's day "mad money" defends those who defend this country's freedom. if you or someone in your family is proudly serving in america's armed forces we invite you to join us. for tickets go to our website. ♪
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remember there was a lot of important news today even though the market was closed. ford, ibm with it's 5 billion buyback. union pacific saying a lot of good things at a conference for the rail business. our thoughts go out to the families that have had such a hard time. see you tomorrow. don't go anywhere. because there is a cnbc special report coming

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